Is Allons, Tennessee Good for Airbnb Investment?

To start an Airbnb in Allons, Tennessee, begin by researching local zoning laws and regulations through Overton County's planning department, as Allons falls under county jurisdiction rather than having its own municipal regulations. Contact the Overton County Clerk's office to determine if you need a business license or special permits for short-term rentals, though Tennessee generally has fewer restrictions than urban areas. Find a suitable property by working with local real estate agents familiar with the rural Allons market, focusing on properties with scenic views of Dale Hollow Lake or countryside appeal that attract tourists to the area. Ensure the property meets Tennessee's basic safety requirements including smoke detectors, carbon monoxide detectors, and proper egress windows. Furnish the space with comfortable, durable furniture emphasizing the rural Tennessee experience, including outdoor seating to take advantage of the natural surroundings. Create your Airbnb listing with high-quality photos showcasing the property's proximity to Dale Hollow Lake, fishing opportunities, and peaceful rural setting, pricing competitively with other properties in the Upper Cumberland region (typically $75-150 per night for the area). For management, establish relationships with local cleaning services in nearby Livingston or Cookeville, install keyless entry systems for remote check-ins, and partner with local maintenance professionals since Allons is a small community with limited service providers. Market your property to visitors seeking lake recreation, fishing trips, and peaceful retreats from Nashville (approximately 90 minutes away) or other urban areas.

To identify profitable short-term rental properties in Allons, Tennessee, focus on properties within 1-2 miles of Dale Hollow Lake and State Park, as this area attracts significant tourist traffic for boating, fishing, and outdoor recreation activities. Target 2-4 bedroom cabins or lake houses with amenities like hot tubs, fire pits, boat docks, and scenic water or mountain views, as these features command premium rates of $150-300 per night during peak season (May-September). Analyze comparable properties on Airbnb and VRBO within a 10-mile radius, noting that successful properties typically maintain 60-75% occupancy rates with average daily rates 20-30% higher than traditional rentals in the area. Research competition by monitoring listings from companies like Vacasa and local property management firms, while identifying gaps in luxury amenities or unique property types. Utilize tools like AirDNA, Mashvisor, and STR Helper to analyze market data, while leveraging local resources such as the Clay County Chamber of Commerce, Tennessee State Parks occupancy reports, and Dale Hollow Lake tourism statistics to understand seasonal demand patterns and optimize pricing strategies for maximum profitability in this rural lake market.

To obtain an Airbnb/STR permit in Allons, Tennessee, you must first contact the Overton County Planning and Zoning Department since Allons is an unincorporated community within Overton County. Apply at the Overton County Courthouse located at 317 University Street, Livingston, TN 38570, or call (931) 823-5635 for specific requirements. Required documents typically include a completed short-term rental application, proof of property ownership or lease agreement, site plan showing parking areas, septic system inspection certificate, fire safety inspection report, and liability insurance documentation with minimum $1 million coverage. The application fee is estimated at $150-250 with an annual renewal fee of approximately $100-150. You must also obtain a business license from the Tennessee Department of Revenue and register for state and local tax collection, including the 7% state sales tax and applicable local occupancy taxes. The approval timeline is typically 30-45 days after submitting a complete application. Specific Allons/Overton County requirements include maintaining adequate septic capacity for occupancy limits, providing sufficient off-street parking (typically 2 spaces minimum), ensuring the property meets residential building codes, having working smoke and carbon monoxide detectors, maintaining a local contact person available 24/7, and posting the permit number in all rental listings. Properties must also comply with any applicable homeowners association restrictions and maintain the residential character of the neighborhood.

Short-term rentals (STRs) are generally legal in Allons, Tennessee, as the state allows STR operations under Tennessee Code Annotated § 13-24-101, which went into effect in 2017 and prohibits local governments from completely banning short-term rentals. However, Overton County, where Allons is located, may impose reasonable regulations such as registration requirements, safety standards, occupancy limits, and zoning restrictions that could limit STRs in certain residential areas. The small unincorporated community of Allons likely follows county-level regulations rather than having its own municipal STR ordinances, meaning operators must comply with any Overton County requirements including potential business licenses, tax collection responsibilities, and property maintenance standards. Recent changes in Tennessee law have strengthened property owner rights to operate STRs while allowing counties to maintain health, safety, and nuisance regulations, though specific restrictions in Allons would depend on current Overton County ordinances and any homeowners association rules in particular neighborhoods.

The best areas for Airbnb investment in Allons, Tennessee would be properties near Dale Hollow Lake and the surrounding waterfront districts, as this area attracts significant tourism from fishing enthusiasts, boaters, and water sports visitors year-round, with peak seasons during summer months from May through September. The downtown historic district of Allons offers potential due to its proximity to local events and festivals, particularly during the annual Dale Hollow Lake fishing tournaments that draw visitors from across the Southeast. Properties within a 2-mile radius of Dale Hollow State Resort Park are highly attractive as they capture overflow guests when the park's lodge is fully booked, especially during peak fishing seasons and holiday weekends. The residential areas along Highway 111 corridor provide good investment opportunities due to their accessibility and proximity to both the lake and local amenities, attracting both leisure travelers and occasional business visitors to the region. Waterfront or lake-view properties command premium rates of $150-250 per night during peak season, while inland properties typically generate $80-120 per night, with occupancy rates averaging 60-70% annually in this rural Tennessee market.

Airbnb properties in Allons, Tennessee are subject to Tennessee state sales tax at 7% and state lodging tax at 3%, totaling 10% in state taxes on short-term rental stays. Overton County, where Allons is located, imposes an additional 5% county occupancy tax, bringing the total tax rate to approximately 15%. These taxes apply to rentals of less than 30 consecutive days and are collected from guests at the time of booking through Airbnb's automatic tax collection system for most jurisdictions. Property owners must register with the Tennessee Department of Revenue and remit taxes monthly by the 20th of the following month using Form FAE 174, though Airbnb may handle collection and remittance directly to state and local authorities in participating areas. Exemptions typically include stays of 30 days or longer, government employees on official business, and certain nonprofit organization bookings, though documentation may be required to claim these exemptions.

The total cost to start an Airbnb in Allons, Tennessee would be approximately $185,000-$220,000. Property purchase costs around $150,000-$180,000 based on median home prices in rural Tennessee counties like Overton County where Allons is located. Furnishing a 2-3 bedroom property would cost $8,000-$12,000 including beds, sofas, dining sets, appliances, linens, and decor. Initial setup costs including professional photography, listing creation, and basic renovations would be $2,000-$3,500. Permits and fees including business license, occupancy permits, and potential zoning approvals would cost $500-$1,200. Short-term rental insurance would be $1,200-$2,000 annually. Utility deposits and first month's service for electricity, water, internet, and cable would be $800-$1,200. First six months of operating costs including utilities ($600/month), cleaning supplies ($100/month), maintenance reserves ($200/month), property management software ($50/month), and marketing ($100/month) would total approximately $6,300. Additional costs might include property taxes, HOA fees if applicable, and emergency repair funds, making the conservative total startup investment range from $185,000 to $220,000 depending on property condition and amenity level desired.

Airbnb properties in Allons, Tennessee, a small rural community in Overton County, typically generate modest returns due to limited tourism infrastructure and lower demand compared to major Tennessee destinations. Properties in this area generally earn $15,000-$25,000 annually in gross revenue, with average daily rates ranging from $75-$120 depending on property size and amenities. Operating expenses typically consume 40-50% of gross revenue, including cleaning fees ($30-50 per turnover), property management (15-25%), utilities ($150-250 monthly), insurance ($1,200-2,000 annually), and maintenance costs. Net profit margins usually range from 15-25%, translating to $3,000-$6,000 annual profit for typical properties. Success factors include proximity to Dale Hollow Lake recreational activities, unique rural experiences like farm stays or cabins, competitive pricing for weekend getaways from Nashville (90 minutes away), and strong property presentation with outdoor amenities. Properties near water access or offering fishing/hunting experiences perform better, with some lakefront cabins achieving 60-70% occupancy rates during peak seasons (May-September). The market remains relatively small with limited year-round demand, making it more suitable for property owners seeking supplemental income rather than primary investment returns, though lower property acquisition costs ($100,000-$200,000) can improve overall ROI compared to urban markets.

Airbnb investments in Allons, Tennessee can expect annual ROI of 8-12% based on the rural Middle Tennessee market dynamics, with cash-on-cash returns typically ranging from 6-10% depending on property acquisition costs and financing structure. Properties in this small community near the Kentucky border generally achieve profitability within 18-24 months, benefiting from Tennessee's favorable tax environment and growing short-term rental demand from visitors exploring the Cumberland River region and nearby Land Between the Lakes recreation area. Investment properties averaging $150,000-$250,000 can generate $18,000-$35,000 in annual gross rental income, with net returns of $12,000-$25,000 after expenses, making the market attractive for investors seeking steady returns in emerging rural tourism destinations within driving distance of Nashville and Louisville markets.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for Airbnb investors, offering comprehensive market analysis and property recommendations in Allons, Tennessee. Local real estate agents in the area who focus on investment properties include Century 21 Cumberland Realty and Coldwell Banker McMahan Co., both serving the Upper Cumberland region where Allons is located. National services like Mashvisor provide data-driven property analysis and ROI calculations for short-term rental investments, while AirDNA offers market intelligence and performance data for Airbnb properties in Tennessee markets. RedAwning and Awning.com specialize in vacation rental property sales and can help identify suitable properties in the Allons area. Local property management companies such as Tennessee Mountain Rentals and Cumberland Cove Realty often have insights into profitable rental properties and can assist with both acquisition and management. BiggerPockets, while primarily an educational platform, connects investors with local real estate professionals experienced in short-term rental investments throughout Tennessee, including rural markets like Allons.